Entrepreneurship and Small Business Management in the UK

This report provides an in-depth analysis of entrepreneurship and small business management, focusing on the UK context. It explores various types of entrepreneurial ventures, including small businesses, scalable startups, large companies, and social enterprises, examining their characteristics, roles, and objectives. The report investigates the impact of micro and small businesses on different levels of the economy, emphasizing their significance in job creation and GDP contribution. It also delves into the characteristics, traits, and skills of successful entrepreneurs, assessing how personality, motivation, and personal background influence entrepreneurial endeavors. The report highlights the importance of determination, risk-taking mentality, confidence, networking skills, a crave for learning, and passion in driving entrepreneurial success. Furthermore, it discusses the similarities and differences between different entrepreneurial ventures and the role of small businesses in the growth of the social economy, providing a comprehensive overview of the subject matter.

Entrepreneurship and Small
Business Management

Table of Contents
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
P1 Examination on different types of entrepreneurial ventures and it's relation with their
typology .................................................................................................................................3
P2 Similarities and differences in between the entrepreneurial ventures ..............................4
P3 Impact of the micro and small business on different level of economy............................5
P4 Significance of small business and business start-ups on the growth of social economy 6
PART 2............................................................................................................................................6
P5 Characteristics, traits and skills of the successful entrepreneur .......................................6
P6 Assessment of entrepreneurial personality impacts on the motivation and mindset ........8
P7 Personal background can be hinder and foster on entrepreneurs......................................8
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Entrepreneurship is a process to set up own business by analysing the business potential
in a particular market. This is a process to provide an employment to people who needs.
Entrepreneurship has many type of risks which can harm the business idea so it is essential for
the entrepreneur to analyse the market to make their products and services accordingly. It is
essential element for the developing countries to improve their economy and decrease the errors
from the economy. The present report is based on the entrepreneurship and small business
management in the UK and it's impacts on the economical development of the country. The
report is having it's focus on the different types of entrepreneurial ventures e.g. small, large,
social and scalable entrepreneurial ventures. Focusing on the UK, many types of micro and small
business are running in the country which has impact on the local, regional, national and
international economy (Schaper and et. al., 2014). At the last this report elaborate entrepreneurs
mind set and experience which drives them to make their future projects.
PART 1
P1 Examination on different types of entrepreneurial ventures and it's relation with their
typology
They are for types entrepreneurial ventures :
Small business entrepreneurship : They are run home based business like a grocery stores,
travel agent, internet part time work, carpenter, consultant, plumber, electronic, hairdresser, etc.
it's small business and any one run own business (Bridge and O'Neill, 2012). They are depend
on local market and they are hair local person for job profile and family members. They are
mostly hard work profitable. It' s many more term of achieve the to feed family and makes
profits. It's not take over the industry. They are not attract capital ventures and they are provide
the funds only friend and family and small business.
Scalable start up entrepreneurship : They are start new business and it not like small business
they are find to the new investor form to change the world vision (Storey, 2016). They are attract
new financial and investor ventures. They are hire the best and bright investor. It's work to search
new scalable and repeated business model. After the search they are focus on capital venture and
fast expansion. They are involve small percentage entrepreneurial. It's attract the risk of capital.

Large company entrepreneurship : They company are limited. It's growing the business
through by offering new product, potestative innovation and wok core corporate. It's change the
consumer test by launch new product, technology, legislative, contestant, etc. it's create the
pressure when new company entire the market and create the disruptive innovation. It's
disruptive new product inside (Chaston, 2014).
Social entrepreneurship : they are work for social services and solve the social requirement and
many type social problem. They focus on innovators and who make the product. It's motive to
convert the world batter place. They are not take any types of share in market and create founder.
They are not work for profit. They are work for many filed like education, h20ealth,
environment.
P2 Similarities and differences in between the entrepreneurial ventures
Entrepreneurial ventures can be determine by their size and types, these are related to the
entrepreneurship which can have similarities and dissimilarities on the basis of the roles,
characteristics and objectives of them. Some of the dis-similarities are here:
Roles: Large, small, social and scalable entrepreneurial ventures are having working in different
sectors on different level. So it creates a differentiation in between them on the basis of roles.
Small scale entrepreneurial ventures are having a role to provide all the essential products and
services to the society on the ground level and they are working with limited rate of profits but
on the other side large and scalable entrepreneurial ventures are working on higher level to make
more profits (Foss and Gibson, 2015). So they are having a role to provide better products and
services to their target customers.
Characteristics: Small scale organisation are having a grip on the customers cause their owners
are having direct connection with the customers and as well as they better know needs and
demands of the customers from them. Large and scalable entrepreneurial ventures are having
expertise to make their products and services more better but less connections with their target
customers reduces their working efficiency (Phillips and Pittman, 2014). Most of the large
companies has conduct market researches to analyse the needs and demands but these market
researches are having less relevancy with the actual needs of the customers. So on the basis
characteristics, these entrepreneurial ventures are having huge difference.
Objectives: Most of the independent private organizations such as small, lifestyle and established
business enterprises go for profit as the primary objective of their operations. They try to reduce

the cost of production and customers are served at an average cost of sale that resulted in benefits
in monetary terms for the company. The private organizations also have goal to increase their
market shares. They always look ahead for the opportunities to invest a part of their capital to
give a rise their shares in market. Most of the small and medium sized enterprises majorly focus
on the growth of their firms along with earning maximum profit (Chishti and Barberis, 2016). As
they are new in the industry and their entry are with a lot of admirations to go ahead in the field,
thus they have to grow their company into a larger firm every next time.
P3 Impact of the micro and small business on different level of economy
Micro and small businesses, mostly known as SMEs, i.e., Small and Medium sized
Enterprises are defined as the independent, non-subsidiary firms that employs not more than 250
people. The numbers may vary every national system of statistics. Those with less than 50
employees are considered to be categorized under small firms and the companies which has less
than 10 in the headcount of their employees, they come under micro enterprises (Hoskinson and
Kuratko, 2015).
SMEs play a very significant role in the growth of economy and are resulting to be the
source of most new jobs. Above 95% of the enterprises in OECD are SMEs and which is almost
accountable to 60%-70% of the employment in most of the countries. The outsourcing and other
downsizing of the larger firms are been done, SMEs' weight is increasing on a high rate in the
economy. Consequent growth of economy and the production growth have been clearly visible in
the economy with the active and passive, entry and exit of the such smaller companies.
Recent studies are showing that the rate of over 55% of the Gross Domestic Product
(GDP) and above 65% of the total employment in the countries with high income generation are
contributed by the SMEs (Mullins, 2013). They are also a major source of export revenues in
some of the developing countries. Initiatives from the government policies shall takes certain
responsibilities regarding the regional and local factors of the that affect the progress of
entrepreneurship and build the needed facilities for creating foster small-firm partnerships. There
is need of management skills upgrades for the small firms. They also need an upgrade to their
data collection methods and base of technology. Legal, financial and regulatory frameworks are
to be conducted for better entrepreneurship and fostering of public-private partnership for the
upliftment of SMEs to build an informatory infrastructure for national and international
economies.

P4 Significance of small business and business start-ups on the growth of social economy
Considering small and medium sized enterprises (SMEs) the backbone of the economy
does really make sense, whether it is local, regional, national or international levels of economy.
SMEs since their establishment in a huge range, hey have been contributing with the increment
of essential elements of the economy. The contribution of SMEs in the rise of GDP is by almost
55% of the economy (Fassin and Buelens, 2011). Above 90% of the operating companies in the
economy represent the SMEs and that itself is a fact of significant appreciation for the
entrepreneurs putting in their efforts and creativity for the production of innovative products and
delivery of services. Since their large scale establishments, they have been ensuring
approximately 70% of the employment in the particular national economy at an aggregate.
SMEs are very significant for the promotion of competitiveness and in the production of
new and innovative products or service delivering standards. SMEs mostly utilize the finance
for the increment of their productivity. Technologies are accessed via the investments and it
helps in expanding the business, and therefore ensure the competitive factors of the company.
These factors decide the position of a national economy in consideration of technology and
development (Colombo and et. al., 2012). It is very much right to portray the level of
development and the performance of a nation's economy depending on the SMEs capability to
create a better atmosphere in the market, that could supply high quality services and competitive
products at a lower cost and in appropriate quantities for the particular market.
PART 2
P5 Characteristics, traits and skills of the successful entrepreneur
Lets start with characteristics and traits a person should possess in his personality,
attitude and mentality for being a successful entrepreneur:
Determination: When you step out on the road of entrepreneurship to start up a business
firm, a person must have the optimum level of determination of sticking with his passion and
work hard to make the dreams become reality (Chittithaworn and et. al., 2011). Determination is
an essential factor one can find in an entrepreneur. He always know what he is up to.
Risk Taking Mentality: A person set out to be an entrepreneur and he is not willing to
take risks on the path of his business life, he can never succeed. Being an entrepreneur is a
profession with a package of risks and he must not be afraid to face them. The risks may be not

only about the financial kind of risks, but there are many more forms of risks on the path of
being a successful businessman.
Confidence: High level of confidence is a necessary essence of a successful
entrepreneur. An entrepreneur has to go through many stressful conditions filled with a bunch of
tensions. The only thing that don't let them break down in such situation is the confidence they
have in themselves that they could go through this and feel the sun after the dark night.
Networking Expert: Building a network of value based relationship is a thing only a
perfect entrepreneur can do (Fayolle and Gailly, 2015). Those valued connections gives them
opportunities for lead in business and long term mutual agreements that are beneficial for both
the parties.
Crave to learn: Constantly learning is a good activity which will help you stay smart. In
the era of industry where everything is persistently changing and evolving , the ones with
continual learning attitude will be able to stay ahead and sustain. There are a lot of competitors in
the industry and everyone always active to cross you to the next greatest thing to claim.
Passion: An entrepreneur should be passionate for his business. The passion will
regularly fuel the run towards his objectives. Passion always help you bring creative ideas which
would result in a pleasant working environment followed by production of innovative delivery
of services and products (Liñán and et. al., 2011).
Now, lets see what are the skills a person need to be a successful entrepreneur. He must be:
 Resilient: An entrepreneur mus be resilient. He must be capable of getting used to the
ups and downs that is usual in a business. He must keep in mind that being an
entrepreneur is not at all easy and it never goes as per the plan. There will be huge loss
sometimes and may enjoy profits at some height, and its all just a matter of time.
 Focused: A long term vision is needed to be set for the deep focus on the next very step
for getting closer to the ultimate objective. There will be lot many stuff trying to distract
him but he must avoid them and focus on what he is aiming at. Business is a profession
before which you need a lot many skills like this to be mastered with.
 A long-term investor: An ideal entrepreneur must be patient and focus on what is going
to come next and where the company want to reach. They may need to wait for
investments for almost a decade for overnight success.

 Efficient at sales: Every entrepreneur is involuntarily a salesman. They keep their ideas,
products and services for sale. They are to be present where a customer keeps his need.
P6 Assessment of entrepreneurial personality impacts on the motivation and mindset
Factors that affect entrepreneurship are categorized under four main groups:
 Demographic factors
 Social Factors
 Psychological factors, and
 Other factor those don't come under them.
Demographic factors are those personal factors such as age, marital status, gender,
income level and education. And what comes under social factors are family, culture, religious
values and society. So, let's assess how the personal and social factors relating to an entrepreneur
creates impact on his personal motivation and mindset (Dennis Jr, 2011).
Factors like education and family background plays a very important role in developing
the mind set of an entrepreneur. For instance, a person with higher level of education in the
family, a person who is the first child in a family or someone who is born in a businessmen's
family is more likely to become a better entrepreneur than who does not in fact have these
factors on their side (Singh Sandhu and et. al., 2011). A person with a high class family
background most probably has the chance of adapting the features that are already a part of their
predecessors. If their ancestors were educated people with high wisdom, then it is more likely
that the person may inherit them and will be assumed to gain higher education too. It is seem
that most of the entrepreneur families are maintained by the successors of the family from ages,
and sometimes they even make modifications according to the need of the generation. It is even
seen that the companies are named on the family names or on the name of family members.
These are definitely the impact of personal and social factors on the entrepreneur's mindset and
motivation.
P7 Personal background can be hinder and foster on entrepreneurs
As there are impacts caused by the personal and social factors on the entrepreneur and his
establishment. Those impacts can affect the professional and personal life of the entrepreneur in
both positive and negative manner. Factors that could hinder and foster on an entrepreneur
includes:

Education: It is an important factor for an entrepreneur that would cause huge impacts
on his company. If the person is not educated, he may not probably know about the latest
technology in the market that could reduce cost of production and can save much of money. And
if an entrepreneur is educated, he will be aware of the technologies which are newly arriving and
he will have the knowledge of market rate of raw materials (Sciascia and et. al., 2012). An
educated entrepreneur have a lot of advantages compared with the entrepreneur with no
sufficient education.
Nation and culture: These factors not just creates impact on the social and personal
traits of an entrepreneur but it can also vary the economical factors that affect that
entrepreneurship. So, this could be considered as a main factor because some other factors are
dependent on the national factors. Financial factors as currency, tax and other monetary factors
differs from country to country. The government of the state is the centre of regulations and
statutory changes to be made in the financial and judicial terms on which the major decisions of
the enterprise is based upon.
Culture is also a part of the overall terms which has the power to decide matter regarding
the company. In some region, the people have surnames after the business their family have been
undertaking since the age of their ancestors. Businesses are even named on the name of deities
which are also a part of culture and beliefs.
Economic Circumstances: This factor can be considered as a part of two main factors,
that is personal factor and financial factor. Economic circumstances could be a part of personal
factors because sometimes the family's economical conditions fluctuate within their personal
reasons such as debt unpaid by the members of the family may end up in the seizure of properties
of the entrepreneur's family following to lack of capital for production (Gedajlovic and et. al.,
2013).
It can also be a part of national and financial factors because the taxes and the rates of
products differs with the availability of resources. Lack of resources in the national provinces
leads to inflation followed by the rise in prices of raw material for the entrepreneurs and when
the cost of production is on a hike, the consumers face issues.
Character Traits: The entrepreneur's character traits include his personality, attitude and
behaviour towards the people he is dealing with, such as customers, suppliers and financiers. His
behaviour with all those parties in relation with the company in the society is a serious matter

that decides the risks and rewards he receives in the business. Behavioural factors such as
responsibility and rudeness sometimes may sometimes end up your hard-work to ashes (Turró
and et. al., 2014). For instance, the entrepreneur brought up his venture after getting capitalized
from a bank loan and if his irresponsible attitude fails to pay the amount and its interest on time,
it will conclude with the seizure of his company.
CONCLUSION
The entrepreneurs are a combination are an impact of a lot of factors involved in the atmosphere
within him, where he belongs to and around them. While factors within his personal barriers
such as his attitude and behaviours could bring hinders and fosters as a result time, so does the
factors around him like the factors related to the society and cultural factors. The factors he
belongs to like the family and national factors also can alter around in his enterprise. Everything,
including the characteristics and skills of the entrepreneur, and the various factors that impacts
him are totally interdependent. All those should be considered while the decisions are made
regarding the company.

REFERENCES
Books and Journals
Bridge, S. and O'Neill, K., 2012. Understanding enterprise: entrepreneurship and small business.
Palgrave Macmillan.
Chaston, I., 2014. Small business marketing. Palgrave Macmillan.
Chishti, S. and Barberis, J., 2016. The FINTECH Book: The Financial Technology Handbook for
Investors, Entrepreneurs and Visionaries. John Wiley & Sons.
Hoskinson, S. and Kuratko, D.F. eds., 2015. The Challenges of Ethics and
Entrepreneurship in the Global Environment. Emerald Group Publishing.
Chittithaworn, C., Islam, M.A., Keawchana, T. and Yusuf, D.H.M., 2011. Factors affecting
business success of small & medium enterprises (SMEs) in Thailand. Asian Social
Science. 7(5). p.180.
Colombo, M.G., Laursen, K., Magnusson, M. and Rossi‐Lamastra, C., 2012. Introduction: Small
business and networked innovation: Organizational and managerial challenges. Journal
of Small Business Management. 50(2). pp.181-190.
Dennis Jr, W.J., 2011. Entrepreneurship, small business and public policy levers. Journal of
Small Business Management. 49(1). pp.92-106.
Fassin, Y., Van Rossem, A. and Buelens, M., 2011. Small-business owner-managers’ perceptions
of business ethics and CSR-related concepts. Journal of Business ethics. 98(3). pp.425-
453.
Fayolle, A. and Gailly, B., 2015. The impact of entrepreneurship education on entrepreneurial
attitudes and intention: Hysteresis and persistence. Journal of Small Business
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Foss, L. and Gibson, D.V. eds., 2015. The entrepreneurial university: Context and institutional
change. Routledge.
Gedajlovic, E., Honig, B., Moore, C.B., Payne, G.T. and Wright, M., 2013. Social capital and
entrepreneurship: A schema and research agenda. Entrepreneurship Theory and
Practice. 37(3). pp.455-478.
Liñán, F., Rodríguez-Cohard, J.C. and Rueda-Cantuche, J.M., 2011. Factors affecting
entrepreneurial intention levels: a role for education. International entrepreneurship and
management Journal. 7(2). pp.195-218.
Mullins, J., 2013. The New Business Road Test: What entrepreneurs and executives should do
before launching a lean start-up. Pearson UK.
Phillips, R. and Pittman, R., 2014. An introduction to community development. Routledge.
Schaper, M.T., Volery, T., Weber, P.C. and Gibson, B., 2014. Entrepreneurship and small
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Sciascia, S., Mazzola, P., Astrachan, J.H. and Pieper, T.M., 2012. The role of family ownership
in international entrepreneurship: Exploring nonlinear effects. Small Business
Economics. 38(1). pp.15-31.
Seymour, R. ed., 2012. Handbook of research methods on social entrepreneurship. Edward Elgar
Publishing.
Singh Sandhu, M., Fahmi Sidique, S. and Riaz, S., 2011. Entrepreneurship barriers and
entrepreneurial inclination among Malaysian postgraduate students. International
journal of entrepreneurial behavior & research. 17(4). pp.428-449.
Storey, D.J., 2016. Understanding the small business sector. Routledge.

Turró, A., Urbano, D. and Peris-Ortiz, M., 2014. Culture and innovation: The moderating effect
of cultural values on corporate entrepreneurship. Technological Forecasting and Social
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